Who can buy?
Buy a house with CLTB: terms and commitments
CLTB housing terms of acceptance
The terms for buying with CLTB are detailed in the regulations of CLTB. They will be verified at the moment when you apply to be a candidate for an apartment put up for sale.
In brief, the terms of purchase are as follows:
- Be registered at the Population Register or at the Foreigners Register;
- DO NOT already be an owner of a house in Belgium or abroad;
- DO NOT surpass the maximum household income level for acceptance into social housing;
- Have the ability to finance the purchase of the desired house. That means that you must demonstrate that you have the ability to obtain a sufficient loan and if you have personal deposit you must also bring the documents of proof;
- Candidats must be able to pay a deposit of about 2,000€ at the moment of their selection in a housing project.
CLTB sells housing but does not give mortgage credit. In order to buy, you must apply for a loan from the Housing Fund or from another credit institution, and it is them who you will repay. Taking out a loan involves paying interest.
Components of purchasing with CLTB
You will join a group
Buying with CLTB means living with future neighbours of a co-owned building. There will be numerous meetings with the group arranged by all the future residents in order to:
- Prepare for the purchase;
- Organise co-ownership and life in the building;
- Learn about the neighbourhood, etc.
It is a process that can take some time and that demands the availability of the entire household.
You will buy under the lease fee system
The defining feature of the “Community Land Trust” model is that land ownership and home ownership are separated, which ensures that housing remains at an affordable price generation after generation. CLTB remains the owner of the land on which your housing is built.
Implications for you as the homeowner:
- You must pay an indexable fee of 10€/month for occupation of the land.
- If you would like to resell your house, you must do it through CLTB who will select a buyer from its list of candidates.
- The sale price will be set by CLTB and you will be permitted to benefit from a small added-value from the resale.
- The “droit de superficie” has a limited duration, which is currently 50 years. At the end of 50 years, the “droit de superficie” can be renewed. If it is not renewed, your house will be put up for sale and you will recuperate the sale price according to the formula determined by CLTB.
Terms of occupation
When you are an owner of a CLTB house:
- You yourself must occupy the house that you buy for a minimum of 9 months/year.
- Your house must be used as a place of residence and not for another usage.
- Renovation is authorised under certain conditions.
Particular situations: exceptional exemption with agreement from CLTB
How much will this cost me per month?
The maintenance of a building is costly. Since you are buying a house that is co-owned, you must pay for the maintenance expenses of the common areas (entrance lobby, lift …), as well as insurance, etc. You must be able to buy your own house and also to pay for the common expenses.
Repayment of the loan at the bank
According to your situation (approximately 1/3 of your net income/month)
Lease fee to pay to CLTB
10€ / month
Property tax: +-1,000 to 1,200€/year for a new house
Anticipate 80-100€ / month
Maintenance of your house (repairs)
Anticipate 20€ / month
Co-ownership expenses: Rolling funds (for minor maintenance in the building) + Reserve funds (major work in the building). The contribution varies according to the size and the type of apartment.
Anticipate min. 140€ / month
Utilities (water, electricity, heating)
In accordance with your usage
Resale Terms
Resale of a house is always managed by CLTB, which selects the next housing candidate from the waitlist.
The resale price will always be calculated with this formula:
Initial investment =
Initial contribution – Costs (notary; loans, taxes)
+ 25% of the property added-value
+ consideration of the work performed during occupation
(and brought to the attention of CLTB)
EXAMPLE
Initial contribution including costs: 140,000€ – Costs : 15,000€
>> Initial investment = 125,000€
Value at market price at the moment of purchase: 150,000€
Value at market price at the moment of resale: 160,000€
>> Added-value of 10,000€
Resale price =
125,000€+ 2,500€ (or 25% of the added value) = 127,500€
The Housing Fund also has a pre-emptive right on the properties that it finances and can request that you pay compensation if you resell within the first 5 years of your purchase and if you make an added-value from the sales price in regards to the property market value from the time of purchase.
What happens if my income increases? Will the sale price be reviewed?
No, once the sale price is set, it will not change. All the better if your income increases.
Can my children inherit my house?
Are the heirs interested in selling?
Heirs always have the right to the “accrued” value of the property (meaning the monetary value of the property).
Do the heirs wish to continue living in the house?
If they want to stay, it is possible during the first 30 years following the date of purchase.
Afterwards:
- If, at the end of these 30 years, CLTB notes that the heir does not fulfill the conditions of access to CLTB housing, CLTB will buy the property from the heir who will benefit from the “accrued” value.
- If, however, at the end of these 30 years, CLTB notes that the heir is within the conditions of access to CLTB housing, CLTB will not effectuate its option of purchase and the heir will be able to remain on the property until the end of 50 years according to the “droit de superficie,” with the possibility of renewal.